Validus Holdings Inc. (VR): Today's Featured Financial Mover

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Validus Holdings ( VR) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day down 1.3%. By the end of trading, Validus Holdings rose 47 cents (1.3%) to $37.46 on average volume. Throughout the day, 1.3 million shares of Validus Holdings exchanged hands as compared to its average daily volume of 889,100 shares. The stock ranged in a price between $36.66-$37.63 after having opened the day at $36.88 as compared to the previous trading day's close of $36.99. Other companies within the Financial sector that increased today were: China Housing & Land Development ( CHLN), up 10.8%, Village Bank and Trust Financial Corporatio ( VBFC), up 9.8%, First Security Group ( FSGI), up 8.4%, and Hampton Roads Bankshares ( HMPR), up 8.1%.
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Validus Holdings, Ltd. through its subsidiaries, provides reinsurance, insurance, and insurance linked securities fund management services in the property, marine, and specialty lines markets worldwide. Validus Holdings has a market cap of $3.98 billion and is part of the insurance industry. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are up 7% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Validus Holdings a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Validus Holdings as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Jacksonville Bancorp Inc (FL ( JAXB), down 12.4%, American Realty Investors ( ARL), down 7.9%, Hampden Bancorp ( HBNK), down 7.9%, and Home Bancorp ( HBCP), down 7%, were all laggards within the financial sector with Charles Schwab ( SCHW) being today's financial sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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